Three bills that could significantly alter or even reverse 2022 reforms concerning attorney fees and medical damages advanced through Florida House subcommittees on Thursday. Despite the victories in the House, there’s a general consensus at the state Capitol that the majority of these proposed changes may not make it through the Senate.
The House Commerce Committee’s subcommittee on insurance and banking approved House Bill 1551 with a wide margin of votes. The bill, sponsored by Representative Hillary Cassel, who represents policyholders, proposes changes to the calculation of attorney fees in litigation related to insurance claims. Essentially, it would modify key aspects of the 2022 legislation that eliminated one-way attorney fees, a fee structure insurers argued incentivized excessive lawsuits. The new bill would introduce “two-way” attorney fees, allowing courts to award increased fees and costs to the winning parties in claim disputes.
Cassel argued the bill aims to rebalance the litigation process, claiming the 2022 reforms favored the insurance industry too heavily. However, insurance defense lawyers and lobbyists opposing the bill expressed concerns it could reignite the property insurance crisis and lead to a surge in unnecessary lawsuits. “We do not believe a prevailing-party system is novel: Versions were tried and were still gamed, leading to continued market downturn,” said George Feijoo, a consultant representing the Florida Insurance Council and several major property insurers. He warned that the bill’s potential effect could be counterproductive, even forcing settlement offers to always include large attorney fees, while also compelling policyholders to pay the insurers’ legal fees if the carrier prevails, even by a small margin.
“This bill is not about the pendulum swinging or making insureds whole. It’s about attorney fees for plaintiffs’ lawyers,”
stated Matt Lavisky, an insurance defense lawyer, speaking on behalf of the Florida Chamber of Commerce.
Representative Michael Caruso, an accountant from Delray Beach and a member of the committee, pointed out that despite the loss of one-way fees in 2022, plaintiffs’ attorneys continue to advertise extensively across the state. “Business must be good,” he remarked, while voting against HB 1551. “I caution you to give the 2022 legislation time to work. It was good legislation. Rates have stabilized. Let’s see if rates go down.”
The American Property Casualty Insurance Association (APCIA), the largest property insurance advocacy group in the nation, also voiced its concerns following the meeting. Adam Shores, Senior Vice President of state government relations, stated that the APCIA “is very concerned about several bills moving in the Florida House that would roll back the recently enacted legal system abuse reforms.” He added that House Bill 1551, in particular, contains “ambiguous language that could re-open the door to exorbitant fee awards for billboard lawyers.” Shores then cited research indicating plaintiff lawyers are the primary beneficiaries in insurance lawsuits. A 2021 report, for instance, showed that from 2013 to 2020, insurers paid $15.3 billion for insurance lawsuits in Florida, with 71% of that amount covering plaintiff lawyer fees and only 8% going to policyholders.
Despite the raised concerns, the subcommittee’s vote was not a surprise to many in Tallahassee. Several House members have expressed worry about the challenges faced by policyholders, especially in light of recent reports in Florida media. These reports have suggested that some insurance companies may have been diverting profits in recent years while allowing subsidiaries to fail and increasing premiums on consumers, further complicating the landscape. HB 1551 has already cleared the Civil Justice and Claims Subcommittee and has one more committee stop before it reaches the House floor, where it is likely to pass, according to insiders. However, the Senate’s support for these measures seems less enthusiastic, with few Senators openly backing the weakening of the 2022 reforms. It’s possible some key elements of the bill could be integrated into other legislation as the session progresses.
In a separate meeting room at the Capitol on Thursday, the Civil Justice Subcommittee unanimously approved HB 1437. This bill, sponsored by Representative John Snyder, R-Stuart, would permit prevailing parties to recover attorney fees in motor vehicle personal injury protection lawsuits brought by medical providers against insurance companies. This bill also has one more committee hurdle before it can be considered by the full House.
The Civil Justice Subcommittee also voted in favor of HB 947, which seeks to overturn a part of a significant 2023 tort reform package. The bill, introduced by Representative Omar Blanco, R-Miami, would once again allow plaintiffs to seek damages based in part on potential, rather than actual, medical costs—a practice that has long been criticized by insurers and businesses. Mark Wilson, President and CEO of the Florida Chamber of Commerce, argued this bill would reverse “the progress made to rebalance Florida’s civil justice system by reinstituting an abusive legal practice that artificially drives up medical damages and allows a handful of unscrupulous doctors and billboard trial lawyers to literally inflate verdicts and exploit the system at the expense of Florida families and local businesses.” Insurance interests have argued that damages should be calculated based on paid costs rather than billed or future medical services, which they claim can often be inflated.
